| BOSTON, April 3
BOSTON, April 3 Maverick Capital's Michael
Pausic, who oversees media and telecommunications investments at
the $9 billion hedge fund, will be starting his own hedge fund,
two people familiar with the matter said.
Pausic, who joined Maverick in 1997, four years after Lee
Ainslie founded the firm in 1993, has wanted to branch out
beyond media and telecommunications for some time and will
receive a significant investment from Maverick's partners to
launch his own firm, one of the two people familiar with the
Pausic and Ainslie, who got his start at Julian Robertson's
Tiger Management, have been friends since their college days at
the University of Virginia. Pausic has moved back to
Charlottesville, Virginia, to set up the firm.
He has been mulling the move for about a year and will
resign his partnership at Maverick, but he is expected to keep
close ties to the firm, one of the sources said.
Maverick employees were told about the move this week and
top investors are being notified now.
Maverick currently has 14 partners, including Pausic, and
the firm has long had a low turnover rate. But as the hedge fund
industry matures a number of partners at established firms have
been spinning out in recent months, often with the blessing and
financial support of their former bosses.
A spokesman for Maverick declined to comment on the move and
declined to make Pausic available.
Pausic's decision to set out on his own follows the
departure of two other Maverick partners, Steve Galbraith and
Gunnar Overstrom, in 2012.
Maverick's performance rebounded dramatically in 2012, when
it beat many rivals with a 15.5 percent return, from 2011, when
it had heavy losses. This year the firm's main fund is up 1.5
percent for the first quarter.
Starting a hedge fund remains very popular, with some 1,108
new funds launched last year, according to Hedge Fund Research.
But keeping them open is tough: some 873 funds shut down in 2012
as it becomes ever tougher to raise capital and deliver the kind
of returns investors want to see.
Former Maverick partner Overstrom is currently shopping his
new fund Three Corner Global to potential investors with an
expected launch date this quarter, according to a person who has
seen the investor presentation.
The firm will select stocks and make corporate credit
investments from time to time. It plans to have as many as 40
long positions and as many as 50 short positions and Overstrom
expects that the team's ideas will target a 20 percent annual
return, according to the investor presentation.
Investors will be expected to put in at least $5 million
each and the firm will use Goldman Sachs and Credit Suisse as
prime brokers. A representative for the fund could not be
Overstrom, who is heading the firm, hired Jeffrey
Eisenstein, a former principal at TPG Axon, as a partner and
director of research. John Nesbitt left Maverick to join Three
Corner Global as a senior analyst.
The sources for this story did not want to be named because
they were not authorized to talk to the media.